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HomeMy WebLinkAboutRes2017-042Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2017-042 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING A LEASE AGREEMENT FOR UP TO ONE YEAR WITH EXIT MARINE, LLC FOR LAND AT THE SEWARD MARINE INDUSTRIAL CENTER WHEREAS, Exit Marine, LLC is currently working in the City's boat storage yard located at the Seward Marine Industrial Center (SMIC) and wishes to extend their business long term; and WHEREAS, Exit Marine, LLC desires a long term lease and has initiated the plat process for a parcel of land located at SMIC; and WHEREAS, the plat process takes a minimum of several months, and the company wishes to continue operating their business while the replat is taking place, and WHEREAS, Exit Marine LLC would like to lease this parcel for up to one year or until a long term lease can be negotiated and approved by the City Council upon final approval of the plat; and WHEREAS, the lease request is consistent with the Comprehensive Plan and the Seward Marine Industrial Center Plan. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The Council approves the agreement to lease approximately 41,055 square feet to Exit Marine, LLC. The term of the agreement shall not exceed one year and such short- term lease shall not be considered a commitment by the City to approve any subsequent lease. Section 2. This resolution shall take effect 30 days after adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 14th day of August, 2017. 1 CITY OF SEWARD, ALASKA RESOLUTION 2017-042 THE CITY OF SEWARD, ALASKA can Bardarson, Mayor AYES: Casagranda, Keil, Squires, McClure, Altermatt, Slater, Bardarson NOES: None ABSENT: None ABSTAIN: None ATTEST: r Jo antia, Ki y, MMC (City Seal) '%"Oulassss� ,•�-1 of SEh�q Cj =•� SEAL �•= �i Q,, ..'.•�'• S yes OF PAP.•'` 1 507486\1002\00628599 Agenda Statement Meeting Date: August 14, 2017 To: City Council Through: Jim Hunt. City Manage From: Norm Regis, Harbonnaster Agenda Item: One Year Lease, Exit Marine, LLC Approximately .942 acres of Land at SMIC BACKGROUND & JUSTIFICATION: Exit Marine, LLC is starting a new boat repair business in Seward. The business has the necessary financing to develop the approximately .942 acre proposed lease site located in the northeast portion of the City Storage yard at the Seward Marine Industrial Center. Exit Marine desires long term lease of this site, but the replat necessary to create the lease parcel will take a minimum of several months. In order to be operational this season Exit Marine wishes to enter into a month to month lease of up to one year in anticipation of a long term lease after the plat process is finished. Attached Exhibit A shows the parcel. Exit Marine would like to have the electric utilities in the ground prior to winter, and understands that if the Council does not approve the future long-term lease that any funds spent installing the in -ground electrical service are not refundable. The purpose of this lease is to allow Exit Marine use of the land for the time necessary to complete the platting process in anticipation of a long term lease which may or may not be approved by the Seward City Council. INTENT: To approve a month to month agreement for up to one year to lease land to Exit Marine, LLC at SMIC. CONSISTENCY CHECKLIST: Yes No N/A 1 Comprehensive Plan (document source here): This lease meets the plan X goals to develop SMIC as a major industrial area of the community. Strategic Plan (document source here): Attract New Industry: 2 Develop an aggressive marketing campaign which highlights the diverse X resources, and quality of life that make Seward a great place to live and establish a business or industry. (Page 5) 3. Other (list): FISCAL NOTE: The rent is $600.00 per month plus tax. The lease rate is based on the 2015 appraisal of a nearby parcel, with increases since that time based on the Consumer Price Index. Approved by Finance Department: X"&-3 ATTORNEY REVIEW: Yes X No RECOMMENDATION: Approve Resolution 2017- authorizing the City Manager to approve a one-year lease with Exit Marine, LLC. I4 00 cn m t ' � a a► loftcCn� Z goo my • op low • •� �, 175 ft tYwl, F. ., 21 D t `� Y ' 14 ft '' fl �'►�► �, ..L G A ST oD om y II - I I _ 10 I I O hJ am co a 5 ------- - - - - -- --------- ----J VN) -----I ------ ----- mo —66661 m oo.eg N --j ---- _ I O r r I Q I 3 I I - II I _ I _ D 0000pp� I � � 0 4 I 0= m Q � I Z li D m _-i °m 30 > _ I I% _ q D M r 77 '° a 0 3 N J ° - s0 I In r °0 3 D I �p II o I ' III I °, o U3381s vO30) sv i3V8i c------7--------- -- -� r------ 3 m ti O� II 11 tP II II N - A-G 0 O F o f r*I -- - - =o�m h Q o mill °3a�� - z - n�v fTl k O c O w I O e m - x- ASLTl Q (r. 0O m N A�"As-o AJ a m z-5mo�-D �v m n -- Z Z Z A < 1 o£ m n n zmNm --zAAN I E o� 311 11 -J O 11 o O O- mS~ - f'l EF Az -6z D m u oo n I - ,� o one K m a �a3 OZ 21-0 ft 4 175 ft r k - 214 ft 216 ft SEWARD MARINE INDUSTRIAL CENTER LEASE This lease (hereinafter "Lease"), for good and valuable consideration, is entered into between the City of Seward, Alaska, a municipal corporation, organized and existing under the laws of the State of Alaska (the "City"), whose address is P.O. Box 167, Seward, Alaska 99664, and Exit Marine, LLC, an Alaska limited liability company authorized to do business in Alaska, and whose address is 281 S. Conquest Circle, Wasilla, Alaska 99623 (the "LESSEE"). 1. Purpose of Lease. This Lease grants LESSEE use of the un-platted real property described below for the purpose of storing materials and equipment and preparing the parcel for its business, in accordance with all laws, regulations, ordinances and City policies while the platting process is completed. The intent of the parties is to enter into a long-term lease of the premises once the platting process has been completed and the plat receives final approval. The platting process and any improvements will be completed by LESSEE at LESSEE's expense. Council approval of a long-term lease will not be unreasonably withheld. 2. Description of Pro e . A parcel of land in Seward, Alaska shown as 41,055 square feet of Lot 3 of Block 4 on Exhibit A attached hereto, and more particularly described as follows: Lot 3, Block 4, of Seward Marine Industrial Center, an area consisting of approximately .942 acres, more or less, the approximate boundaries shown in Exhibit A to this lease. Other than access to and from this designated area, use of any area outside of this designated area is not permitted, including, but not limited to, parking, storage or disposal. 3. Term. The term of this Lease shall commence July 24, 2017, and continue until the earlier of one (1) year or the effectiveness of a long-term lease approved by the Seward City Council ("Council"). 4. Leases. are subject to the Seward City Code and Require Council Approval. LESSEE understands and agrees that this and any subsequent lease is entered into pursuant to Seward City Code Chapter 7 and is subject to Council approval and referendary petition as follows: (a) Pursuant to Seward City Code § 7.05.125, this Lease is subject to Council approval. If a resolution authorizing this Lease is presented to Council and Council does not approve the resolution, this Lease shall automatically terminate. (b) Upon Council approval of the resolution approving any lease or other interest in land, the approved agreement is subject to suspension during the first SEWARD MARINE INDUSTRIAL CENTER LEASE PAGE 1 OF 4 507486\1002\00628587 thirty days after passage of the resolution if a sufficient referendary petition is filed in accordance with § 4.8 of the Seward City Charter. (c) Upon termination or suspension of the Lease pursuant to this Section 4, LESSEE agrees to remove any connexes, vehicles, materials, equipment and other property from the premises within five (5) calendar days of such termination or suspension, and restore the premises to the same or better condition existing at the time prior to entering upon the premises. LESSEE will not be reimbursed for any expenses incurred in preparation for a long-term lease. 5. Rent. Upon execution of this Lease, LESSEE shall pay the City $600.00 per month for the rental of the premises for the term of this Lease to be calculated on a pro rata basis for any partial month prior to entering a long-term lease. LESSEE agrees that the rental amount is an interim calculation and is not necessarily representative of any rental amount that will be imposed under any long-term lease for the property. 6. LESSEE's Property. Any vehicle, equipment or material placed upon the above -described premises shall be and remain the property of LESSEE and may be removed therefrom by LESSEE at any time provided that LESSEE shall not damage or impair the City's property while installing or removing LESSEE's property. 7. Termination. In the event of LESSEE's default in the performance or observance of any of the Lease terms, conditions, covenants and stipulations thereto, and such default continues five (5) days after written notice of default, the City may cancel this Lease, or take any legal action for damages or recovery of the property. This Lease may be terminated for convenience by either party upon fifteen (15) days' written notice to the other party. Upon termination or cancellation of this Lease, LESSEE covenants and agrees to remove any vehicles and all other equipment and materials from the premises within five (5) days and restore the premises to the same or better condition existing at the time prior to entering upon the premises. Removal will not be required if this Lease is superseded by a duly authorized long-term lease for the premises prior to the end of the term set forth in paragraph 3 above. 8. Liability and Indemnity. Except and to the extent solely caused by the City's own negligence or intentional misconduct, the City shall not be liable for damage to property or injuries to persons, including death, arising from the construction, operation, maintenance, removal or activity of LESSEE, its principals, officers, employers, associates, agents, representatives, successors, heirs or assigns, licensees or invitees, and LESSEE does hereby agree to release, protect, defend, save harmless and indemnify the City, its officials, employees and authorized representatives against any loss, cost, damage, expense, judgment or liability of any kind whatsoever, from or by reason or on account or as a result of the activity of LESSEE. 9. Waiver. LESSEE acknowledges that the premises are not secured by the City, the area is open to other users and the public, and LESSEE accepts all risk of loss or damage whatsoever. LESSEE waives all claims against the City for any and all loss or damage that may occur. The City makes no representations or warranties as to the fitness of any particular part or the whole of the City's public facilities for the uses SEWARD MARINE INDUSTRIAL CENTER LEASE PAGE 2 OF 4 50748611002100628587 intended by LESSEE and LESSEE has inspected the site and has satisfied itself that the designated premises are sufficient for the intended uses by LESSEE. The City makes no representations or warranties of any nature with respect to the commercial practicability or accuracy of any information provided by the City. 10. Liability Insurance. LESSEE, during the term of this Lease, shall carry, at its expense, public liability insurance covering the licensed property in an amount of not less than $500,000 for injury or death to any one person, $1,000,000 for injury and/or death to any number of persons in any one accident, $1,000,000 for property damage or destruction and the statutory amount required for Workers' Compensation insurance. The minimum requirements in this section may be increased from time to time by the City in accordance with customs and usage for comparable property in the Seward area. 11. Additional Named Insured: Waiver of Subrogation. All insurance policies required of LESSEE shall name the City as additional insured. All policies shall contain an agreement by the insurers that such policies shall not be canceled or amended without at least thirty (30) days' prior written notice to the City, and certificates or copies of all such insurance policies shall be furnished to the City promptly after the issuance thereof. 12. Repairs and Maintenance. LESSEE shall pay the cost of repair of any damage to the above -described premises caused by LESSEE, its invitees or guests occurring during the term of this Lease. 13. No Assignment or Subleasing. LESSEE is not allowed to assign this Lease or sublease the premises. 14. No Hazardous Materials. The use, keeping, storage, or disposal of hazardous materials on the premises is prohibited. 15. Lease Agreement Only. LESSEE agrees and understands that this agreement is a temporary lease agreement only and that by accepting this contract the City is not accepting LESSEE's property for storage; the relationship between the parties is simply that of a landlord and tenant. Unless the property is formally impounded by the City, the vehicles, equipment and materials on the premises, shall at all times remain in the exclusive possession and control of the LESSEE and the City is not acting, and shall not be held liable in any manner, as a warehouseman or a bailee. SEWARD MARINE INDUSTRIAL CENTER LEASE PAGE 3 OF 4 50748611002100628587 IN WITNESS WHEREOF, the parties hereto have executed this document by and through their duly authorized officials. CITY OF SEWARD, ALASKA By: Jim Hunt Title: City Manager Date: ATTEST. Johanna Kinney, City Clerk (City Seal) State of Alaska EXIT MINE, LLC By: Mike Saunders Title: Owner Date: r:.>'7— SEWARD MARINE INDUSTRIAL CENTER LEASE PAGE 4 OF 5074861100=0628587